Thu, Apr 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Emerging markets continue to offer opportunity, and a useful approach to economics for developed markets - Van Eck Global

Wednesday, June 09, 2010

From Kirsten Bischoff, Opalesque New York:

"This month [May], we played a lot on the short side," says Eric Fine, former head of emerging markets research and founder of emerging markets prop trading at Morgan Stanley. He is current Portfolio Manager of the emerging markets macro G-175 Strategy at Van Eck Absolute Return Advisers Corp. Van Eck manages $22 billion, including $3 billion in emerging market focused funds.

For Fine and his team, focusing on putting emerging market asset prices in the right valuation context to each other and to developed markets has been a big driver behind shifting the portfolio to capture performance in both upward and downward moves.

Typically, the G175 strategy focuses on fundamentals, but when technical moves are in play, the most crowded moves (typically those based on fundamental analysis) are often the ones that suffer the most. Making money every month is the focus, therefore, positions that the team sees priced well and that are cheap are left on the table until markets stabilize. "Right now the most bullish we want to be is no risk on," he says.

This has meant collapsing the portfolio's investment horizon from 3-12 months to mere hours. "For May, we pretty much had a 24 hour investment horizon," Fine says. "Shorts can really punch you in the nose because there is always the risk of intervention on the other side."

Overall, EM investors struggle to commit to market opportunities The wild......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. Niche Investing – Wealthy investors flock to fine art funds[more]

    From Clickorlando.com: Wealthy investors looking to diversify beyond stocks and bonds are now turning to an unusual money-making vehicle -- the art investment fund. The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit. Growth

  3. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  4. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act

  5. Performance – Odey flagship hedge fund suffers brutal March as shorts rise, Blackstone first-quarter profit rises 30% on higher fees[more]

    Odey flagship hedge fund suffers brutal March as shorts rise From Valuewalk.com: The tide has turned for the worse for one of Europe’s best performing hedge funds. Crispin Odey’s flagship hedge fund, Odey European has suffered a 4.63% decline for the year after slipping 7.2% in March, ac